Selling Phoenix Home: Sell now or wait?
I am thinking of selling my Phoenix area home. I hear home prices could up as much as 10% in the next two years. I am thinking of moving, should I sell my Phoenix home or should I wait?
If you have been reading these AskTPREG posts you know what is likely coming next, it depends… But let me explain why.
First we are going to make some assumptions. First we are going to assume that 10% number is right. Second we are going to assume that there are no huge changes in the interest rates, which there could be, and finally we are going to assume that you want to sell, not that you need to sell for a reason.
So let’s take a look at the numbers, and then you can decide what works best for you depending on your situation.
Your Current House $150,000
Your Target House $300,000
If both come up 10% in the next two years, and you wait to sell, you are costing yourself dearly. Here is why. If you wait, then you will get an extra 15,000 for your house, but your new house will costs $30,000 more than it does today. So you are costing yourself more money, not to mention the interest payment on that extra money over the life of the loan.
Your Current House $300,000
Your Target House $150,000
Now, assuming there are no other factors for you moving, it MAY make sense to hold on to the house. You will sell in 2 years for $330k while the new house will only be $165k.
Now this is very basic math. It does not take into consideration other factors. Such as is the new house closer to work so you save on gas every week. Is the new old house a lot more a month in HOA and electric etc.
So there are many factors to consider, but generally speaking, if prices are going up it is generally better to wait if you are downsizing, and sell if you are moving up in a house.